Ethereum Smashes $4,350 Liquidity Pool—Will Bulls Keep the Pressure On?
Ethereum just blasted through a $4,350 liquidity pool—now the question is whether demand can sustain the rally.
### The Liquidity Crunch Test
Markets don’t lie—when ETH punches through a key level, it’s either a breakout or a bull trap. This time, the move comes amid surging gas fees and DeFi activity, but can the momentum last?
### The Whale Factor
Liquidity pools at this level often attract big players. If institutional money starts circling, $4,350 could flip from resistance to support. If not? Prepare for the usual crypto volatility.
### The Cynic’s Take
Wall Street’s still calling it a 'speculative asset'—right up until their own ETFs go live. Funny how that works.
Ethereum Grabs Liquidity At Key Price Level
Top analyst Ted Pillows recently shared Ethereum’s liquidity heatmap, highlighting the $4,350 zone as a critical level where major liquidity was taken. According to Pillows, this MOVE will determine whether Ethereum can stabilize and build a stronger base for its next rally. He poses the essential question: Will $4,350 be enough for ETH to hold?
In the short term, the $4,350 zone now acts as an important pivot. If ETH maintains this level, it could serve as a launchpad for another push toward $4,800 and eventually beyond $5,000. However, a failure to hold could see price retest deeper supports near $4,000, which WOULD prolong consolidation before any further breakout.
Supply on exchanges is declining, signaling strong accumulation and reduced selling pressure. Institutional adoption is rising, with ETFs attracting record inflows and major companies adding ETH to their treasury strategies. Regulatory clarity in the US has improved, easing concerns for large-scale investors and legitimizing ETH as a Core asset.
With these drivers in place, Pillows and many others believe that Ethereum is on a clear path to set new all-time highs above $5,000, once the current volatility settles. The market may be turbulent in the coming weeks, but the broader trajectory still points higher.
Weekly Chart Analysis: Consolidation Below Resistance
Ethereum’s weekly chart shows a decisive pullback after touching $4,790, with the price now retracing to around $4,270. The move represents an 11% decline from the recent peak but comes after an explosive rally that pushed ETH above long-term moving averages, highlighting a shift in market momentum.
The 50-week moving average sits at $2,811, while the 100-week and 200-week averages are clustered near $2,788 and $2,443, respectively. ETH’s distance above these levels reflects strong bullish momentum, as the asset remains well supported by its higher trend structure. Historically, when Ethereum trades significantly above these averages, corrections tend to be part of a healthy consolidation before resuming upward movement.
Long-term investors may interpret the retracement as a reset of overextended conditions, potentially preparing ETH for another leg higher. If Ethereum stabilizes here, a retest of $4,790 and eventual breakout toward new all-time highs above $5,000 remains a plausible scenario in the coming months.
Featured image from Dall-E, chart from TradingView
